Deductions for Looking for a Job

Qualifications

If you worked in college or had an internship, and you are looking for a job in the same field, deductions will be allowed for your search. However, if you are looking for a job in a new field or for a new job that has more or less responsibility than your most recent job (such as finding a job as a store manager when you have been working as a sales associate), you cannot deduct your job search expenses. Also, if you have not worked in your last business or trade for an "extended length of time" (about a year or more), your job hunt will likely be categorized as looking for a new line of work, according to H&R Block's website. You may not be able to take job search deductions. If you have just graduated and did not work while in school in a position related to your most previous line of work, you will not be able to take the tax deductions.

You can deduct your job hunting expenses as miscellaneous itemized tax deductions. You can do so provided that the total of all your miscellaneous itemized deductions is greater than two percent of your adjusted gross income. Take two percent of your adjusted gross income away from your job hunting expenses to calculate your tax deduction. These deductions are "also subject to the overall limitation on itemized deductions based on income threshold amounts," according to the H&R Block website.

You may be able to deduct employment agency fees if you incurred them while looking for a job. Should your new employer repay your agency fees, include the amount of the fees in your income on your taxes up to the total deduction you previously claimed. If the employer pays the agency instead of you, it is not necessary to include them in your income. You can deduct the costs of typing, printing, mailing and faxing your resume as well.

You can also deduct long-distance charges, photographs or advertising expenses related to your resume. If you have to travel while you look for a job, you can deduct the cost of plane tickets and mileage as well. Some expenses related to cars have also been approved. You can deduct the some of costs of meals. Lodging can only be deducted for the actual amounts you spent. You may also deduct career counseling and legal and accounting fees related to employment contract negotiations.